Democracy demands change in business leadership

Eric E. Hallett, Head, Business English Center, Prasetiya Mulya Business School, Jakarta, Indonesia, eric@pmulya.ac.id

Every once in awhile I hear a friend or colleague murmuring their desire to return to the "good old days" in Indonesia when Pak Harto led the country. The cost-of-living was cheaper, there were more jobs and more security, and everyone just seemed to be happier with life. They mention things they now miss like opportunity, stability, and hope among other things. Yet, I wonder if there is more to their need to return to yesteryear than just comfort and convenience. Perhaps what these people are really missing is a sense of leadership.

Democracy does funny things to a society. Once our thirst for participation in how we are governed is quenched it changes the way we view our relationship to authority at many levels including the workplace. At the national level we can no longer tolerate the unquestioned demands of an authoritarian. We also find that without the authoritarian we are left groping for direction, stability, someone who will act as an anchor to our hopes and dreams. Ultimately, we sense a collective emotional vacuum. Where is our father?

This is also true in business. Business leaders in Indonesia today must grapple with a general change in perception towards leadership and the accompanying shift in emotional needs among peers and subordinates. They can no longer rely on just being iron-fisted decision-makers among increasingly critical employees. When leadership styles change from authoritarian to participative, both in politics and in business, a sense of wandering or lack of direction follows. Workers and the population in general still need to be led, but from a different perspective.

The dilemma that our business leaders face today is this: How can they successfully lead a company or organization where workers are becoming increasingly familiar with being involved in new ways and less comfortable with simply following commands? What can they do to minimize discontent as "authoritarianism" gradually falls out of style and psychological needs for fulfillment increase?

First, our leaders must realize that, as authoritarian methods of leadership become less desirable and psychological needs change, new leadership styles must be adopted at the same time. They must recognize that they are the source of direction for their business or organization and develop their role at the forefront of the business as emotional leaders, not just decision-makers.

Second, as emotional leaders, executives must inspire and motivate those around them to "buy-in" to their ideas and plans for the business, not to just accept commands. Instead of insisting on loyalty, they must invite loyalty by sharing a vision for the future that excites people and attracts them to participate in a joint effort together.

Third, successful business leaders in Indonesia's new political climate must communicate in new ways that require them to come out from behind closed doors and into the center of activity. If executives need "buy-in" from those around them, they're going to have to talk about more than the latest company data.

The amount of communication we have with people and the depths at which we communicate with them determine our level of intimacy. If we are intimate with people they will do almost anything for us. Think about your family.

On the other hand, if we are distant with people they will rarely do anything for us. As leaders who are transitioning from authoritarian or reclusive roles in the workplace to more open, sharing roles we have no choice but to share our dreams, hopes, successes, and failures if we are to be successful -- even if this means increasing our level of vulnerability.

Examples of powerful leaders who were also great communicators abound throughout history. Their success is correlated with their ability to share their values, goals, and passions, and to win the support of their constituents.

Yet, even with such numerous examples of effective leadership to convince us, it may be difficult to shift our leadership style from closed and authoritarian to open and participative because our leadership style is deeply rooted within the values of our culture. The wise leader recognizes this and is prepared to make changes in his/her leadership style as society's sense of values and even the national culture itself changes side-by-side with changes in the political process.

I believe that what my friends and colleagues pine for when they reminisce about yesteryear is more than just leadership itself. Ask any of them to think closely about returning to those days and hesitations arise.

What they are really missing is something that must come with a new style of democratic leadership in Indonesia -- collective goals, plans, ideas, and hopes for the future.

What they really need is leadership that organizes and shares these goals, plans, ideas, and hopes through vision for the future that is communicated. They desire leadership which compels and motivates them by asking them to make a choice, to believe, and to act -- both in business and in politics.

The writer is also a lecturer in International Comparative Management.